Dear Sirs,
For Individuals:
1) The 1% monthly penalty for outstanding taxes payable is calculated as per simple interest or compound interest basis?
2) The number of months is calculated from the end of July or March?
Please let me know.
Balaiah
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Penalty on Outstanding Taxes
Replies (7)
My view is that it is Simple Interest and the penalty will be levied from March.
agree with Rahul...in case of penalty only march while in case of interest that must be last due date of filling return
YA IT IS SIMPLE INTEREST ONLY SURE
First of all I divide your question into three sections Viz. 234A, B & C.
234A Starts from August for Individuals
234B starts from April
234C Tax*30*3%+tax*60*3%+tax*1% (Assuming that no advance tax has been paid, if the respective percentages were paid, that part alone can be ignored).
With Regards
Giridharan K
interest is 3 types
1. 234A
2. 234B
3. 234C
1. For 234A it's start when you are unable to file the return on or before date then this interest levied.
2. For 234B it's start from April of A.Y
3. For 234C Start from the end of these days of 15-6,15-9,15-12,15-3 P.y
regards
Manish
mr. manish is right
Since this is the hot period of filing returns of indvidual, I construed outstanding taxes as non compliance of payment of advance tax and interest thereon which comes U/s 234B & C. I consider theses 3 sections as brothers and hence i gave formulas for all the three.
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